Sponsors (2)
The bill increases short-term access and renewal continuity for some people but does so by expanding non-ACA plans that can leave enrollees with coverage gaps, raise premiums in the comprehensive market, and expose consumers to unexpected costs.
Uninsured or temporarily insured individuals can obtain short-term health plans lasting up to 12 months, increasing temporary coverage options and access to some insurance when other coverage is unavailable.
Policyholders (including people with chronic conditions) can keep coverage without undergoing new medical underwriting when they use a renewal guarantee, improving continuity of coverage for those who remain on the plan.
People who enroll in short-term plans (including those with chronic conditions) may face significant coverage gaps because these plans often exclude essential health benefits required in ACA-compliant plans.
Healthier enrollees may move from comprehensive ACA-compliant plans into cheaper short-term plans, increasing adverse selection and likely driving up premiums for ACA-compliant plans paid by middle-class families and taxpayers.
Consumers may be misled about the limited scope and temporary nature of short-term plans and therefore face unexpected out-of-pocket costs when they need care.
Based on analysis of 2 sections of legislative text.
Adds a federal definition of short-term limited duration insurance as a plan lasting up to 12 months that may include renewals without new underwriting.
Introduced March 25, 2026 by Glenn Grothman · Last progress March 25, 2026
Creates a federal definition of “short-term limited duration insurance” that describes a health plan that expires no later than 12 months after its original start date and may include a guaranteed renewal option that does not require new underwriting. The change simply adds this definition into the federal insurance code; it does not itself set benefits, consumer protections, or funding.